KUALA LUMPUR: Jewellers Tomei Consolidated and Poh Kong Holdings Bhd fell in early trade Tuesday although gold prices gained some ground after falling on Monday.
Tomei shed 7.61%, or seven sen to 85 sen while Poh Kong fell 6.78%, or six sen to 82.5 sen.
Gold prices got hit earlier with Covid-19 vaccine news as demand for safe-havens disappeared as investors rushed to value stocks.
Spot gold rose 0.5% to US$1,871.81 per ounce by 0136 GMT, Reuters reported.
It fell to US$1,849.93, its lowest level since Sept. 28, on Monday after U.S. drugmaker Pfizer Inc said its experimental Covid-19 vaccine was more than 90% effective, based on initial trial results.
OANDA senior market analyst Edward Moya said gold prices got hit with a vaccine right hook as demand for safe-havens disappeared as investors rushed to value stocks.
He said Pfizer’s vaccine news was so positive investors had to overlook the short-term headwinds that are hitting the economy.
“The next six months will be a tough time for the US economy as small businesses will not be able to survive the return to lockdowns and restrictive measures.
“Gold appears very vulnerable, but the short-term stimulus trade remains intact as central banks will increase accommodation over the next several months,” he said.
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